How Senate Bill 90 Will Transform Property Taxes in Montana

Missoula, MT (KGVO-AM News) - In my weekly visit with Montana Senate President Matt Regier on Thursday, he was excited to share the nearly unanimous support for Senate Bill 90.

Regier said there was barely any opposition to the bill that would help lower property taxes for Montanans.

Senate President Matt Regier on SB 90; a Property Tax Credit Bill

“We just heard Senate Bill 90 in the House committee today,” began Regier. “It passed the Senate 50 to zero in the second reading, I believe it also passed 46 to 4 on the third reading. Senate Bill 90 gives a yearly, perpetual, year-after-year tax credit on every primary Montana resident homeowner’s property tax bill.”

Regier said SB 90 draws revenue from tourists who visit Montana and the funds have been going directly into the state’s general fund, but SB 90 would change that.

Regier Favors SB 90 Because it Taxes Tourists to Montana

“It's just how much we take in the tourist tax,” he said. “Tourists come here and stay in hotels, get rental cars, and pay a tax on those, and all that money is going to the state general fund right now. Now, instead of going to the general fund, our argument is that the tourists are using the roads, the sewers, the infrastructure, and the homeowners are paying for it, but the state general fund gets the tourist tax dollars. That doesn't make sense.”

Regier said the tax credit would go to each and every Montana homeowner.

“This bill would divert those tourist tax dollars to the homeowners with the same credit for everybody,” he said. “So, if you have a $500,000 house or $700,000 house, you get the same credit depending on how many tourists visit and pay that tax.”

Regier Said Every Montana Homeowner would Benefit up to $500 Per Year

Regier said the advantage of SB 90 would be that every Montana homeowner would benefit up to $500 per year.

“Right now it's about $300 dollars, and we're looking for more revenue streams to get that up to above $500 dollars every year, and that would be fabulous. This is a credit on your tax bill, on everybody, every primary homeowner’s tax bill. So it'd be a credit for you year after year after year after year.”

There are several property tax relief bills being considered in the legislature, including House Bill 231 preferred by Governor Gianforte, which permanently cuts property tax rates for Montana homeowners, renters, and small businesses.

HB 231 has already passed the Montana House and is now before the State Senate.